Grasp the four major elements of the Australian capital market in 2021 and enter 2021. The epidemic continues. Australia’s capital market is often the first choice for everyone to invest.
So how to grasp the investment direction of 2021? The key lies in 4 points.
- The RBA’s attitude-whether to maintain the current ultra-low interest rates throughout the year
Although the Reserve Bank of Australia (RBA) announced that it will keep interest rates at the current ultra-low level in the next three years. However, the rebound of the Australian economy was significantly better than expected.
- Is the vaccine useful?
Although the vaccination work is rapidly advancing globally, there are still many mysteries to be solved about the urgently launched vaccine. Is the vaccine useful? How many people will be vaccinated? Was it successful as expected?
These factors will directly affect investor confidence.
At present, vaccine benefits have been successfully reflected in asset prices, but it is still unclear whether vaccine manufacturers around the world can cope with the huge public health challenges of this era.
- The key to China-Australia trade lies in iron ore
The price of iron ore has more than doubled by 2020.
But it is undeniable that China will eventually find an alternative.
In the long run, China will import iron ore from Africa. In the short run, China will increase the utilization rate of scrap iron.
If in 2021, China finds a way to get rid of its dependence on Australian iron ore (found a breakthrough), Australia’s most important export product will face a huge crisis.
- Can Super be withdrawn permanently in advance
During the epidemic, in response to extreme economic situations. The federal government specifically approved the early withdrawal of superannuation. Now, the younger generation of Australians are accustomed to using Super for purposes other than retirement savings.
At the same time, the federal government will increase the pension requirement from 9.5% to 10% in 2020. As more money will flow to Super, policy advisers believe that normalizing the release of Super early is a topic that can be discussed.
